Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium ofRs. 2 per share, payable as follows :On application Rs. 2.50 per shareOn allotment Rs. 4.50 (Including premium)On First Call Rs. 2.50On Final Call Rs. 2.50 1,50,000 Applications were received. Application for 1,20,000shares were allotted on prorata basis and the host were rejected.The surplus money received was adjusted towards the moneydue to allotment.Amar, an allottee of 200 shares did not pay the allotment andFirst Call money. His shares were forfeited after the First Callwas made. Babu an allottee of 300 shares did not pay both thecalls. His shares were Forfeited after the Final Call. Pass entriesin the Books of the company and Balance Sheet.

Equity shares are those shares which do not have preferential right on dividend and repayment of…

Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows : On application Rs. 2.50 per share On allotment Rs. 4.50 (Including premium) On First Call Rs. 2.50 On Final Call Rs. 2.50

Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows : On application Rs. 2.50 per share On allotment Rs. 4.50 (Including premium) On First Call Rs. 2.50 On Final Call Rs. 2.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of
Rs. 2 per share, payable as follows :
On application Rs. 2.50 per share
On allotment Rs. 4.50 (Including premium)
On First Call Rs. 2.50
On Final Call Rs. 2.50

1,50,000 Applications were received. Application for 1,20,000
shares were allotted on prorata basis and the host were rejected.
The surplus money received was adjusted towards the money
due to allotment.
Amar, an allottee of 200 shares did not pay the allotment and
First Call money. His shares were forfeited after the First Call
was made. Babu an allottee of 300 shares did not pay both the
calls. His shares were Forfeited after the Final Call. Pass entries
in the Books of the company and Balance Sheet.

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